Microfinance as a Catalyst for Skill Development of Poor Women

Abstract

Skills and entrepreneurship development are the buzz word in progressing India. A lot of initiatives are being taken by the Indian Government to encourage and promote micro-entrepreneurs. As a huge talent pool lies in rural areas and slums of India, it is beneficial to understand the dynamics of such areas and accordingly work toward the development of entrepreneurs if these areas.

Microfinance Organizations and NGOs are the players who majorly work in these areas. However, Microfinance organizations have proven their mettle at accessing such areas and offering services to the poor women.

Cognizant of this fact, the research aims at understanding if the Microfinance Organizations play any role in providing or enhancing the skills of their women clients. On review of literature and previous studies done, it is concluded that though Microfinance Organizations may not be themselves imparting all the skills required for these women to become entrepreneurs, but they definitely contribute in the process. MFIs in their capacities and interest may be providing one or many of the skills listed in the research paper, which in turn encourages and inspires the women to take up or enhance their business. Some MFIs also have been instrumental in linking the MFI clients to appropriate skill building and marketing agencies to provide holistic services.

Hence, it can be concluded that Microfinance has definitely served as the catalyst in the process of Skill Development for the poor women clients. In absence of these Microfinance Organizations, probably the women even if had skills, may not have had the required money and encouragement to run successful micro enterprises. This is the largest contribution of the Microfinance Organizations where though micro-loans and continuous engagement with the clients, they handhold the clients to run a business.